The Impact of Regulatory Technology on Corporate Social Responsibility Decoupling: Evidence From China

ABSTRACT Using the differential adoption of regulatory technology (RegTech) across local securities regulatory bureaus, this study examines how RegTech influences corporate social responsibility (CSR) decoupling. The result suggests that RegTech significantly mitigates CSR decoupling. Mediation analyses identify securities enforcement, market oversight, and internal governance as the underlying mechanisms. Cross‐sectional tests show that the mitigating effect is more pronounced for firms with greater regulatory distance, lower media scrutiny, fewer slack resources, and higher executive excess compensation. Additional analyses demonstrate that RegTech restrains strategic CSR decoupling and enhances firm reputation. This study offers pivotal insights for the intelligent transformation of traditional regulatory approaches and advances the framework of modern financial oversight.